Exterior
Window Fashion VISION is committed to keeping a finger on the pulse of our industry and reporting on the trends shaping our field to help busy professionals make informed business decisions. With exteriors now one of the fastestgrowing segments of the window covering industry, we knew it was time to delve into the state of the outdoor shading market.
As attendees at our 2024 International Window Coverings Expo (IWCE) discovered, outdoors is where it’s at! To get an in-depth look at how this segment is evolving and where it’s headed, we surveyed leading retailers, dealers, designers, workrooms, fabricators, installers and manufacturers. We surveyed thousands of custom window covering experts and hundreds responded offering us greater insight into the status of exteriors among our unique industry.
Here’s a look at our survey respondents:
It’s a highly experienced group, with more than 80% reporting they’ve been in the custom window covering business for 10 years or longer. identified themselves as retailers or dealers, though many of those offer a wide range of additional services. are exclusively designers/ decorators or offer these services, while 23% provide workroom services and 17% provide installation
This report summarizes the key findings of our comprehensive exterior survey, presenting a compelling picture of a market segment with significant potential.
A few undeniable facts emerged:
The exterior shading segment is hot and growing incredibly fast.
Most retailers and dealers already sell or plan to sell these high-demand products.
The rewards for tapping the exterior segment are tremendous.
The State of the Market: Emerging
You can’t flip through an industry magazine or walk a window covering trade show floor without finding an abundance of innovative options for shading and equipping outdoor living spaces. As one designer noted, “Based on the (IWCE) show floor, this segment is HOT.”
Though some industry professionals believe exterior shading products are the domain of high-end clients, others view them as more broadly applicable and believe we’ve barely scratched the surface on this market. As one retailer commented, “There is enough work to go around, and demand is increasing exponentially.” Another described exterior shades as “the new verticals from the ’80s and ’90s.”
Most Popular Exterior Products Sold
• 34% Shades or screens
• 20% Roller shades
• 14% Any type of motorized outdoor shading solution
Sixty-nine percent of our respondents already sell exterior shading solutions and nearly 9% plan to add them in the next 12 to 24 months. Only a fraction of these professionals is new to selling exterior products: More than 60% who offer these products have been doing so for at least five years, and another 23% have been in this business for two to five years.
Though the range of exterior products available continues to grow rapidly, some believe the U.S. market is nowhere near as advanced as Europe when it comes to developing new solutions. As one fabricator pointed out, there are few products developed in the U.S., though the hope is that new product R&D will take hold in there soon.
• 12% Retractable awnings
• 11% Zip screen or shade systems
• 7% Outdoor furniture
• 7% Cushions or pillows
• 6% Outdoor drapery
• 2% Bahama shutters
• 2% Pergolas
• 2% Audio and other electronic systems
Azenco Outdoor
What’s Driving the Growth in Exteriors?
Particularly in the residential market, COVID-19’s impact on our way of life helped fuel greater demand for outdoor areas that extend a home’s livable space. With restrictions keeping people home, many decided to invest in major upgrades—and exterior projects claimed a healthy percentage of their spending, as consumers looked to turn their backyards into beckoning destinations. One dealer has seen exterior shading sales jump by an astounding 200% since COVID hit the U.S.
As homeowners expand their living spaces, they’re seeking creative ways to make it more comfortable to spend time outdoors, regardless of the climate. That’s evident in the primary functions that buyers expect an exterior shading solution to serve: Nearly half of our respondents cited glare control as the No. 1 function their clients look for, followed closely by heat reduction and weather protection. While climate-related factors topped the list, many respondents also said privacy is a big driver of an exterior shading purchase. For others, the sheer beauty of an exterior shading solution is the main draw.
What Clients Mostly Look for in an Exterior Shading Solution
Given the emphasis on reducing glare and heat, it was predictable that warm-weather states such as Texas, Florida and California were named the most popular areas for exterior shading sales. On the other hand, about 10% of respondents sell outdoor solutions nationally. And though summer proves the most profitable season for selling exterior products (cited by 34%), a similar number of professionals find it lucrative to sell them year-round. About one-quarter find their best-selling season is the spring, as homeowners prepare for the arrival of hotter temperatures.
Exteriors Represent a Small-But-Growing Share of Sales
The Surge in Demand Is Just Getting Started
Though the market is growing rapidly, exterior shading currently represents a small portion of annual sales for most industry professionals. About 53% said exteriors only account for 5% to 10% of their sales. On the other hand, nearly 34% said exteriors represent 10% to 30% of their business, and almost 8% find more than half of their revenue comes from exterior shading products.
The average size of an outdoor project varies widely. And though most skew toward the lower end, on the whole these projects are larger than most interior window covering jobs.
• About 35% of retailers and dealers reported an average outdoor project size of $5,000 or less, while 44% said their projects are typically $5,000to 10,000. The results are similar for designers and other businesses that offer design services, with 49% reporting their outdoor projects average $5,000 to 10,000.
• On the other hand, about 14% of retailers and dealers typically handle projects of $10,000 to $20,000, and 5% reported average projects of $25,000 or more.
Regardless of the project’s size, much of the outdoor work is happening on existing homes and other structures. Nearly half the retailers and dealers we surveyed said 75% or more of the exterior work in their region is on existing buildings, while 34% see a smaller percentage of jobs (20% to 50%) occurring on current structures. On the other end of the spectrum, 1 out of 5 retailers/dealers said existing structures only account for 20% or less of the exterior projects in their area. These results indicate a significant opportunity to branch out into the newly built arena for outdoor jobs.
What’s Hot Outdoors?
While every outdoor project is unique, several common themes underscore the hottest trends in outdoor living and, by extension, exterior shading.
There’s a definite inclination toward larger living spaces, and that’s fueling a need for oversize screens and shades. When we asked what percentage of the exterior business involves shades with widths greater than 23 feet, the answers varied from “none” to “75% or more.” A fair number of retailers/dealers find that half or more of their projects require oversize widths; however, even those that use extra-wide shades less frequently find the demand increasing. As one dealer/designer commented, “I haven’t done any to this size yet, but I expect that to change.” Some expressed concerns about oversize shades warping or a lack of hardware that can withstand high winds at larger sizes, while one designer cautioned that local windstorm requirements can limit exterior shade size.
Respondents see homeowners splurging on their exterior living spaces. As one dealer described it, “People are going all out!” Industry professionals report strong interest in adding more livable square footage by blurring the lines between indoor and outdoor for a seamless connection—ideally creating a space the client can enjoy most of the year. As a designer shared, outdoor living spaces are now “the extra room of the house” and a true home extension. Today, these areas are likely to sport lots of creature comforts, such as elaborate kitchens, built-in grills, ceiling fans, integrated TVs and audio systems, and cozy-butweather-resistant furniture that rivals what you’d find indoors.
Motorization Is Taking Off Outside
Many industry professionals are adding motorized exterior shading products to meet skyrocketing demand for these convenient options.
• 82% percent of retailers and dealers said they sell both motorized and manual outdoor shading solutions
• 13% just offer motorized versions.
• 33% of all respondents provide the electrical connection for motorized outdoor shades, signaling an opportunity to expand the business with this critical add-on service.
• 25% provide a single outdoor-rated remote that can control all outdoor screens, fans, louvers, lights and other features—another chance to upsell.
Clients that choose a motorized exterior shading solution don’t always see the value of integrating it with their home automation system. About onequarter of survey respondents rated the importance of this feature to their clients a low 1 out of 5, and only onequarter believe their clients find it very important. It’s possible many clients simply aren’t aware that this possibility exists, opening the door to providing better education about the full range of motorized features.
What’s Hot Outdoors? (cont)
Our respondents sell a wide range of creative options for outdoor shading—with one dealer describing the spectrum as “anything from mild to wild.” But screens and shades top the list by a wide margin.
Exterior Shading Colors Run the Gamut
When it comes to choosing colors for exterior shading hardware and fabrics, anything goes! Our surveyed revealed there is just as strong an interest in dark colors as lighter hues, and some designers and their clients are eschewing neutrals for bold, playful color selections.
• 41% percent of respondents said black is the most popular color for exterior shading products, while 42% listed brown, bronze or other dark colors as the common choice.
While few industry professionals currently sell outdoor draperies, some are seeing an uptick in interest. Alongside exterior shading products, about 20% have added outdoor furniture to the mix.
When choosing from this full range of offerings, consumers and business owners have a strong preference for shades and screens, with about 76% of respondents indicating these are the most popular exterior products they sell. Buyers also have a propensity for roller shades specifically (cited by 20% of respondents), as well as any type of motorized shading solution (a popular item for 14% of sellers), retractable awnings (a big seller for about 1 in 10) and zip screen systems (which sell well for about 12% of our respondents).
• 37% see lighter neutrals like white, tan, taupe and beige as the preferred color schemes.
• Various shades of gray are common too, with 17% of respondents selling exterior shading solutions in light gray, charcoal and stainless-steel hues.
• For those who prefer a pop of color, a primary like blue is popular, along with bright greens, oranges and yellow. As one manufacturer noted, fun colors, stripes and patterns can add personality to an outdoor project!
Some retailers and designers tend to pair dark hardware with light screens or shades, while others take the opposite approach, and still others match the tone of the hardware to the screens. Though color choice is often a function of style preference or a desire to mimic the home’s exterior or blend with the surrounding environment, sometimes the homeowner’s HOA poses restrictions that limit the permissible color scheme.
Zipscreen / Rollease Acmeda
Selling Outdoor Shading Poses Challenges
Though the market for outdoor shading is booming, it still takes a bit of work to overcome common objections and sell these products successfully.
Cost is by far the top sales challenge, cited by about one-third of our respondents. Several dealers even described the client’s reaction as “sticker shock,” with some buyers questioning why the exterior shading solution is more expensive than their indoor shades.
Installation issues pose the second most common challenge—from encountering obstacles at the jobsite to finding reliable installers to do the work. Some find it tricky to install exterior shading on an existing structure without making extensive modifications. As with any sale, it’s also important to “set client expectations to reality,” as one dealer noted—not only about price, but about the product’s operation and ability to protect against the elements.
To ease the sales process, it helps to be prepared for the most likely questions and objections. The retailers, dealers, designers and other professionals we heard from overwhelmingly agreed that queries about price top the list—so selling the value of these solutions is key!
A close second is any question related to the product’s durability: Will it hold up in high winds? Is it hurricane rated? How durable is this fabric? How long will this solution last? Many clients also want assurance that the product will provide the functionality they expect, whether it’s protecting them from heat, glare, wind and rain; providing privacy; or keeping out bugs and pollen. Given the high cost of these projects, warranty questions come up often as well.
Clients are less likely to ask about the product’s ease of use or ease of cleaning. And though few want to know “Can I keep the shades down all the time?” or “How windy does it need to get before I have to close it?”—these are red flags that indicate a need to establish realistic expectations.
Tackling the Top Service Issues
By far, the most common reason for service calls on an exterior shading product is a weather-related problem, mentioned by 40% of those who sell these solutions. And wind is the most likely culprit. Many shared that the root cause is usually “user error,” meaning the client leaves the screen, shade or awning down in high winds (or perpetually), causing it to tear or become dislodged from the track. One dealer shared that clients even attempt to operate exterior shades after snow or ice has accumulated! Setting clear expectations about the impact of foul weather can go a long way toward avoiding these service issues.
Some professionals have experienced installation problems that eventually necessitate a service call. Even bugs can wreak havoc, as “little critters get into the track and cause the shade to go off balance or insects get rolled up into the shade and cause it to skew,” according to one dealer.
With motorized outdoor solutions surging in popularity, it’s a fact of life that technology- or power-related problems will generate service calls. Even after a brief power outage, some products won’t work until they’re reprogrammed, and sometimes the motor breaks down or simply wears out.
By far, the most common reason for service calls on an exterior shading product is a weather-related problem, mentioned by 40%. Wind is the most likely culprit.
The Challenges May Be Great… but So Are the Rewards
While selling exterior shading products isn’t a slam dunk (even in this fast-growing market), the rewards can be significant.
Most respondents told us a happy client is the best reward they can achieve when providing the optimal outdoor shading solution. In fact, it’s all about the smiles: “seeing the smile on their face when it’s installed” or “seeing the smile when they close the shade for the first time.” Some professionals enjoy watching their client boast about their new system or hearing that the project exceeded their expectations, while “knowing you sold the right system that will endure for years” is especially gratifying. It doesn’t hurt that a satisfied client usually yields referrals.
This industry is known for creative problem-solving, so it’s not surprising that many respondents believe the best reward is knowing you’ve provided a solution to a particularly thorny exteriors challenge. In the words of one dealer, it’s about “figuring out the best option for the client to achieve all of their goals and having the knowledge and available product line to do so.” And, of course, selling, specifying and installing exterior products is a business, so making a profitable sale is very satisfying.
A Great Supplier Makes All the Difference
Any professional who works with exterior shading solutions needs the utmost confidence in their suppliers. And that’s reflected in what our respondents look for in a supplier, the number of suppliers they work with and their willingness to make a switch.
Whether they’re selling, specifying, fabricating or installing outdoor shading products, when industry professionals choose a supplier, the most important criteria include customer service, lead time and the level of sales and marketing support. In fact, 7 out of 10 said all of these factors rank as “most important” when selecting a supplier.
Most respondents maintain a tight circle of exterior shading suppliers:
• 16% use only one vendor
• 29% work with two companies
• 33% of respondents work with three or four outdoor shading suppliers
• Very few work with a large number of companies
However, some have changed suppliers in the last year for various reasons. They typically cited quality or reliability issues, like product damage during shipment, product quality variability, poor customer service or long lead times. In some cases, the manufacturer stopped making the desired product or the retailer found better options elsewhere. With a few noting their supplier went out of business, it begs the question, will this industry segment consolidate over time?
Drapery Street
What’s Next for Exterior Shading?
Industry professionals see tremendous potential in the exteriors market, with lots of opportunities to sell outdoor shading solutions that enable both residential and commercial clients to expand their usable space and spend more time outdoors comfortably. The promise of this lucrative market is driving many to seek more outdoor projects that can boost revenue and profitability.
Many of the professionals we surveyed are eager for more product innovations, particularly in the motorization arena. Whether it’s rechargeable motors, solar-powered motors or just more motorized shading options, they look forward to more electronically controlled exterior solutions that deliver greater convenience.
Our respondents also see a trend toward cleaner design in outdoor shading, as more creative products come to market. And many expect TVs, audio systems and other electronics will be integrated into outdoor living spaces on a much larger scale—yet another factor that will spur more demand for exterior shading.
As one retailer/dealer remarked:
This can be a massive industry in the next five years.
Based on our survey results, the growth surge is already starting!
Zipscreen / Rollease Acmeda